As the world continues to change and adapt to the new methods of making, moving, and spending money, it has become apparent that a shift in strategy is taking place. From crypto currencies to artificial intelligence, a new wave of operating & transferring money abounds. With so many new trends, it is hard to know what is sound. But without a doubt, Financial Technology Is The Future.
Financial technology or “FinTech” is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
Fintech now describes a variety of financial activities, such as money transfers, depositing a check with your smartphone, bypassing a bank branch to apply for credit, raising money for a business startup, or managing your investments, generally without the assistance of a person. Financial technology has been used to automate investments, insurance, trading, banking services and risk management.
Types Of Financial Technology
• Artificial Intelligence & Machine Learning
• Robotic Process Automation (RPA)
• Cryptocurrency & Blockchain technology
• Smart contracts
• Open banking
• Peer-to-Peer Lending
A subset of fintech companies that focus on the insurance industry are collectively known as insurtech. According to EY’s 2017 Fintech Adoption Index, one-third of consumers utilize at least two or more fintech services and those consumers are also increasingly aware of fintech as a part of their daily lives. Fintech can also be considered “any innovative ideas that improve financial service processes by proposing technology solutions according to different business situations, while the ideas could also lead to new business models or even new businesses.
Finance is seen as one of the industry’s most vulnerable to disruption by software because financial services, much like publishing, are made of information rather than concrete goods. In particular, blockchains have the potential to reduce the cost of transacting in a financial system. In 2021, one in every five dollars invested by venture capital has gone into fintech. Global investment in financial technology increased more than 2,200% from $930 million in 2008 to more than $22 billion in 2015. Fintech companies in the United States raised $12.4 billion in 2018, a 43% increase over 2017.
Financial Technology Is The Future. At Ironcrest Capital Management, we strive to make sure that everyone we work with has a strong understanding of their investments. Having a good approach and focus on the most important factors before investing is key. Let us help you make the right decisions. If your current investing approach isn’t working, reach out to us so we can help.